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Wednesday, July 08, 2015

Thanks To Wall Street, America Has Growing Greek - Like Debt Bombs

Americans all too quickly forgot Bush bank criminals grand performance in 2008  

WALL STREET ON PARADE
By Pam Martins and Russ Martins
07/01/2015

Greece has two things in common with bankrupt or teetering parts of the United States: it took advice and money from Wall Street while paying huge fees; now the catastrophic results of that bad advice is falling on the backs of the poor and most vulnerable citizens. In fact, we’re all Greeks now.


From the $1.2 trillion in student debt now on the backs of U.S. college students, a growing number of whom are turning to prostitution to keep up, to teetering Puerto Rico, the bankruptcy of Jefferson County, Alabama in 2011, Detroit’s bankruptcy in 2013, Wall Street was on hand to grease the skids or set the train wreck in motion.


As Greece pensioners line up outside of banks today to receive a fraction of their monthly pension, Puerto Rico has acknowledged it can’t pay its $72 billion in debt and has imposed a stunning 11.5 percent sales tax on its struggling citizens.

How did Puerto Rico, with a tiny population of just 3.6 million, get itself into such astronomical debt? In October 2013, the Wall Street Journal’s Michael Corkery and Mike Cherney reported that Wall Street banks, led by Citigroup and UBS, since 2006 had sold 87 Puerto Rico debt deals totaling $61 billion. For burying Puerto Rico under debt, the reporters note that Wall Street, its lawyers and related parties received $1.4 billion in fees.

And, of course, there were those wonderful swap deals along the lines of those Goldman Sachs sold to Greece and JPMorgan sold to Jefferson County, Alabama. Corkery and Cherney report that Puerto Rico paid “$690 million to Wall Street firms to cancel derivative contracts” that apparently had gone sour as had the ones in Greece.


Americans would do well to remember these assholes - and what they got away with

Then there was the issuance of interest-bearing bonds by Puerto Rico to pay off the interest on other bonds. According to the reporters, in August 2013 Morgan Stanley led an underwriting on $673 million in bonds but “at least $110 million of the debt will be used for ‘capitalized interest,’ according to the bond offering documents. That amounts to raising money from bondholders and then using the proceeds to make interest payments back to those same bondholders. It will also result in larger debt payments down the road.”

If a retail stock broker attempted to bury his client under margin debt or allowed the client to commit financial suicide in the market, the broker would be on the wrong side of the law. A long line of arbitration cases and Security and Exchange Commission rulings mandate that a registered representative must guide the client on a course of suitable investing. But apparently, burying counties, cities, countries, and U.S. territories under debt has no legal barriers on Wall Street. One has to get caught bribing someone to get charged by a regulator.




Back on November 4, 2009, JPMorgan’s trading unit, JPMorgan Securities was charged with the following two years before Jefferson County, Alabama filed for bankruptcy:

“The SEC alleges that J.P. Morgan Securities and former managing directors Charles LeCroy and Douglas MacFaddin made more than $8 million in undisclosed payments to close friends of certain Jefferson County commissioners. The friends owned or worked at local broker-dealer firms that performed no known services on the transactions. In connection with the payments, the county commissioners voted to select J.P. Morgan Securities as managing underwriter of the bond offerings and its affiliated bank as swap provider for the transactions.”




The SEC notes that the payments were secret but JPMorgan “passed on the cost of the unlawful payments by charging the county higher interest rates on the swap transactions.”

Glenn S. Gordon, the Associate Director of the SEC’s Miami Regional Office, had this to say at the time: “This self-serving strategy of paying hefty secret fees to local firms with ties to county commissioners assured J.P. Morgan Securities the largest municipal auction rate securities and swap agreement transactions in its history.”




Jefferson County emerged from bankruptcy on December 3, 2013 but sewer ratepayers will be feeling the pain of the county’s debt binge for decades to come. According to a 2013 report by Bloomberg News, sewer rates are projected to rise by “7.9 percent each year for four years, starting in 2014, and by almost 3.5 percent annually through 2053.” The report notes further that the “sewer rate increases will disproportionately affect the poor. Seventy percent of the sewer system’s users reside in the commission districts with poorest residents.”


Will Americans demand bank criminals be prosecuted this time around?

What we already know about these derivative debt bombs is indeed unsettling. What is far more dangerous, however, is what we don’t know. Many deals were written in secret and have confidentiality clauses.



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ANDREW KREIG: EXPERTS REJECT FIRE AS CAUSE FOR 9/11 WTC COLLAPSES

The real truth on 9/11 slowly continues to bleed out

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Technical experts are mounting major challenges to official U.S. government accounts of how three World Trade Center skyscrapers collapsed in near-freefall after the 9/11 attacks 15 years ago.

Many researchers are focusing especially on the little-known collapse of

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The Geopolitics Of The United States, Part 1: The Inevitable Empire

The Empire and the inevitable fall of the Obama criminal regime

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STRATFOR Editor’s Note: This installment on the United States, presented in two parts, is the 16th in a series of STRATFOR monographs on the geopolitics of countries influential in world affairs.

Like nearly all of the peoples of North and South America, most Americans are not originally from the territory that became the United States.

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Geopolitics Of The United States Part 2: American Identity And The Threats of Tomorrow

A look back at 2011 predictions for the future in order to put events of today into perspective

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We have already discussed in the first part of this analysis how the American geography dooms whoever controls the territory to being a global power, but there are a number of other outcomes that shape what that power will be like. The first and most critical is the impact of that geography on the American mindset.

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By Robert S. Finnegan

This e-mail outlines and confirms the acts of espionage against Indonesia and Indonesians by Akiko Makino and the others involved both in Kobe University and in AI Lab at University of Airlangga, Surabaya; Bahasa Indonesia original follows English translation...

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UPDATED 01/07/2015 : New Analysis Challenges Tamiflu Efficacy; Hong Kong Corona Virus Outbreak

UPDATED 01/07/2015 : FOX NEWS CORPORATE PHARMA SHILL MEGAN KELLY AND FOX NEWS QUACK DOCTOR NOW PUSHING TAMIFLU FOR PREGNANT WOMEN AND CHILDREN;

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THE 5TH ESTATE UNEQUIVOCALLY WARNS THE PUBLIC NOT TO TAKE OR GIVE THIS PROVEN DANGEROUS, INEFFECTIVE DRUG TO ANYONE

Obama criminals now resulting to biowarfare in quest to destroy Chinese and ASEAN economy; "novel virus substrain" points directly to a Kawaoka / Fouchier / Ernala-Ginting Kobe lab virus weaponized and genetically altered to specifically target and infect the Asian population: Ribavirin...

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The 5th Estate has just purchased a library on H5N1 "Novel" virus pandemics, there are dozens of PDF and Exel documents we feel will assist you in saving lives following intentional releases of the H5N1 and now MERS viruses; we will begin by printing those that appear to be extremely relevant here: H5N1 Kobe-Kawaoka-Ernala series continues soon with more "Smoking Gun" e-mails from Teridah Ernala to The 5th Estate . . .

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By Robert S. Finnegan

On October 12, 2002 the Indonesian island of Bali experienced a terrorist attack that rocked the world. It was unquestionably well-coordinated and executed, the largest in the country's history.

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